Federal Reserve Governor Michelle Bowman said Friday she believes interest rates need to stay where they are “for a bit longer.”
“It is of utmost importance that we maintain credibility in pursuing our fight against inflation by proceeding carefully and deliberately to achieve our 2% goal,” Bowman said while speaking in Arlington, Texas.
“I think we need to be where we are for a bit longer,” she added. “And if we don’t see progress on inflation, then I think we really need to be thinking about what we need to do from there.”
The comments echo similar sentiments from other Fed officials in recent weeks that interest rates will likely need to stay where they are until more data shows inflation is safely on the path down towards the Fed’s 2% inflation target.
The central bank kept interest rates unchanged last week but warned inflation is still too high to cut.
In its statement, members say, “Inflation has eased over the past year but remains elevated. In recent months, there has been a lack of further progress toward the Committee’s 2 percent inflation objective.”
